Powell Max takes minority stake in Remington parent and seeks larger deal

Powell Max ($PMAX) acquired an initial minority interest in Blackrod Holdings, the parent of Remington Firearms, under a signed share-exchange agreement. The transaction also gives Powell Max a 12-month exclusivity period to pursue a broader combination. Blackrod and its members are restricted from soliciting or negotiating competing acquisition proposals during that period unless the agreement ends earlier.

The move represents a potentially significant diversification for a company whose existing business provides financial communications and reporting services. However, the release did not disclose the percentage acquired, the exchange consideration or a valuation for the proposed larger transaction. Acquiring the remaining ownership interests still requires negotiation of a definitive agreement and cannot be assumed to occur. The completed minority investment and the prospective control acquisition are separate stages with different levels of certainty.

Sources:

• Powell Max company release, GlobeNewswire mirror